In-App Purchase A/B Test Design & Evaluation

Q: In-App Purchase A/B Test Design & Evaluation

This question evaluates experimental design, pricing strategy, monetization analytics, and statistical reasoning for in-app purchases, testing a candidate's ability to weigh conversion versus revenue trade-offs and user experience implications.

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Question

A/B Test: In‑App Purchase Page Pricing (Page A vs Page B)

Context: You are testing two purchase pages in a mobile game. Page A presents a higher price with fewer buyers; Page B presents a lower price with more buyers. Assume randomization at the user level, a 50/50 split, and a 14–28 day observation window. The goal is to decide which page maximizes long‑term profit while maintaining user experience.

Hypotheses
- Why Page A (higher price, fewer buyers) could outperform Page B (lower price, more buyers).
- Why Page B could outperform Page A.
Metrics
- List primary and secondary metrics (e.g., conversion rate, ARPU, LTV, ROI) and explain why.
Statistical Approach
- How to determine statistical significance and test design details.
- How to check whether current sample size has enough power.
ROI with Promotions
- How to incorporate promotional cost ("spend X, get bonus Y") into ROI and profit calculations.
Follow‑Up Experiment
- Propose a next experiment based on initial results.

In-App Purchase A/B Test Design & Evaluation

A/B Test: In‑App Purchase Page Pricing (Page A vs Page B)

Solution

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